Mortgage-reducing term insurance compulsory for HDB owners using CPF to pay their HDB loan. Pays off the outstanding HDB loan if the insured dies, becomes terminally ill, or totally permanently disabled.
A mortgage-reducing term insurance scheme operated by CPF Board. Compulsory for HDB flat owners using CPF to pay their HDB loan. Pays off the outstanding HDB loan balance if the insured dies, becomes terminally ill, or is totally permanently disabled.
Premiums are calculated based on age, sum insured (outstanding loan balance), and loan tenure. Paid annually from your CPF Ordinary Account — no cash outlay required. Premiums are typically modest in the early years and rise over time as you age.
Only if you have comparable private mortgage-reducing term insurance with at least the same sum assured and tenure. Submit the alternative policy details to HDB / CPF for review. Most owners with private mortgage insurance through term-life policies can apply for exemption.
No — HPS is specifically for HDB concessionary loans paid via CPF. For bank loans on HDB flats, you can voluntarily take HPS or buy private mortgage-reducing term insurance. Most banks recommend coverage but don't require it.